NEW DELHI — Energy prices in India took a sharp upward turn on Saturday, March 7, 2026, as oil marketing companies (OMCs) passed on the rising costs of the West Asia conflict to consumers. The price of a 14.2 kg domestic LPG cylinder has been hiked by ₹60, marking the first significant increase for households since April 2025.
Commercial users, including hotels and restaurants, face an even steeper climb with a ₹115 hike per 19 kg cylinder. This follows a smaller ₹28-₹31 increase that took effect just days ago on March 1.
1. Revised Metro City Rates (Effective March 7)
| City | Domestic (14.2 kg) | Commercial (19 kg) |
| Delhi | ₹913 (from ₹853) | ₹1,883 |
| Mumbai | ₹912.50 (from ₹852.50) | ₹1,835 |
| Kolkata | ₹939 (from ₹879) | ₹1,990 |
| Chennai | ₹928.50 (from ₹868.50) | ₹2,043.50 |
Note for Ujjwala Beneficiaries: Over 10 crore poor households under the PMUY scheme will continue to receive a ₹300 subsidy, keeping their effective cost per cylinder at approximately ₹613 in Delhi.
2. The “Hormuz Factor”: Why Prices Are Rising
The hike is a direct consequence of the war between the U.S.-Israeli alliance and Iran, which entered its second week today.
- Supply Chokepoint: The Strait of Hormuz, through which 20% of global oil and a large portion of India’s LPG imports flow, remains a high-risk zone with tanker traffic plunging.
- Crude Surge: Brent crude prices have jumped nearly 15% in a week, hovering between $80 and $82 per barrel. Analysts warn that a prolonged conflict could push prices toward the $100 mark.+1
3. Govt Invokes Emergency Powers (ESMA)
To prevent a “dry-out” of cooking gas in Indian kitchens, the Ministry of Petroleum has invoked emergency powers under the Essential Commodities Act (ESMA):
- Refinery Directive: All public and private refiners (including Reliance and MRPL) must maximize LPG production.
- Petchem Diversion: Refiners are now barred from using propane and butane for profitable petrochemicals; these must be diverted exclusively for domestic LPG.
- Domestic Priority: The government has instructed that all increased output be sold to state-run OMCs (IOC, HPCL, BPCL) for household use only.
4. Diversifying Away from the Gulf
Despite the crisis, Union Minister Hardeep Singh Puri assured the public that “there is no shortage of energy.”
- Russian Imports: India has ramped up Russian crude imports to 20% of its total basket (approx. 1.04 million barrels per day) to offset Gulf disruptions.
- U.S. Shipments: A new one-year contract for 2.2 million tonnes of LPG from the US Gulf Coast has seen its first shipments arrive this week, providing a critical buffer.